New machinery, which replaced a number of employees, was installed and put in operation in the last month of the fiscal year. The employees had been dismissed after payment of an extra month’s wages,...

New machinery, which replaced a number of employees,
was installed and put in operation in the last month of the
fiscal year. The employees had been dismissed after
payment of an extra month’s wages, and this amount was
added to the cost of the machinery. Discuss the propriety of
the charge. If it was improper, describe the proper
treatment.